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- 1. GOLD MOVEMENTS & ITS IMPACT ON INDIAN ECONOMY Mayank Sajwan Roll no- DBS/2010-12/73 MBA 3rd Semester Email:- sajwanmayank@gmail.com
- 2. INTRODUCTION • Gold is a soft, shiny, malleable and ductile metal and is a chemical element with the symbol Au and atomic number 79. Pure gold has a bright yellow . • A total of 165,000 tonnes of gold have been mined in human history, as of 2009.
- 3. GOLD USES • Gold is an ancient metal of wealth, commerce and beauty, but it also has a number of unique properties that make it invaluable to industry. These properties include: • Resistance to corrosion • Electrical conductivity • Ductility and malleability • Infrared (heat) reflectivity • Thermal conductivity
- 4. Top 10 Gold Consuming Countries 1. India 2. United States 3. China 4. Turkey 5. Saudi Arabia 6. United Arab Emirates 7. Egypt 8. Italy 9. Pakistan 10. Vietnam
- 5. Top 10 Countries Produce Gold 1. South Africa 2. Australia 3. United States 4. China 5. Peru 6. Russia 7. Indonesia 8. Canada 9. Uzbekistan 10. Papua New Guinea
- 6. GOLD PRICES IN INDIA FROM 2000-2011 (PER 10 GM) YEAR Price 2000 4400 2001 4300 YEAR 2002 4990 Price 2003 5600 2004 5850 2005 7000 2006 8400 2007 10800 2008 12500 2009 14500 2010 18500 2011 26400
- 7. Importance of Gold in Defining Status Gold is used to define the status of the 3 classes .i.e. 1. Elite class 2. Middle class ( Upper middle, Lower middle) 3. Poor Class Because the majority of Elite class who is interested in purchase the things made from gold to maintain their status. But in case of middle class they purchase Gold ornaments only when there is some special occasion .i.e. during marriage or any function.
- 8. IMPACT OF GOLD IMPACT OF GOLD ON SENSEX Gold is an important saving instrument in India and is very often used as a protection against inflation, it is expected that gold may be looked upon as alternative asset for those holding idle money. Even though gold is considered to be the best alternative source of investment, investor’s have tendency to switch to gold investment when they find the market to be too risky. IMPACT OF GOLD ON INTEREST RATES • Interest rate is more when the economic condition is stable. If interest rate is lower money gets easily available. If investor invests his money he would not get the high returns. In such scenario Gold is good option due to its store value • Whenever interest rates fall, gold prices increase. Lowering interest rates increases gold prices as gold becomes a better investment option.
- 9. IMPACT OF GOLD ON EXCHANGE RATES The rate at which one currency is converted into another currency is the Rate of Exchange. When the dollar appreciates it takes more dollars to buy the gold. Gold is imported from the foreign country and US dollar is standard currency for trades occurring internationally. Hence as the dollar price increases or rupee depreciates, gold price increases simultaneously. IMPACT OF GOLD ON INFLATION "Millions of people all over the world regard gold as 'money,' if not the only 'true' money." As a consequence, the price of gold commands attention, and rightly so, because it serves to indicate general price stability or inflation. But gold is also a commodity, used in jewelry and by industry. This means that the details of its demand and supply affect its pricing, and need to be considered when gold is used to assay monetary policy.